Online auto insurance study shows 2% decline in average lowest rates

An online study designed to spot and highlight the pricing trends of car insurance in Ontario identified a 2% decrease in the average lowest rates quoted for auto insurance in Q4 2008 compared to Q4 2007.
The somewhat counterintuitive results were released by Kanetix, an online marketplace for insurance quotes and mortgage rates.
The survey comes at a time when data from Ontario’s auto rate regulator, the Financial Services Commission of Ontario (FSCO), suggests auto insurance companies have increasingly been applying for auto rate increases over the past several quarters.
“While the past five quarterly rate studies showed a trend of increasing car insurance costs, for the first time in over a year a decrease was noted,” Kanetix noted in a press release announcing the results of its survey.
“The average decrease of about Cdn$50 is not likely due to insurance companies lowering their insurance rates.
“Instead, we believe it is due to thousands of consumers opting to take advantage of additional discounts such as the winter tire discount.”
The study results, and resulting interpretations, are based on the profile information as it is entered by online auto insurance shoppers, Kanetix notes, and thus may not represent their accurate driving profile or vehicle data. “As such, Kanetix can make no representation or warranty, either expressed or implied, as to the accuracy of this information.”